MOONSHOT - attacking the most violent stock on earth!
Qualcomm is probably the most violent stock on the planet. The resent trip to the moon was a result of the signing of a truce with Apple (APPL). Apple - the giant - had sued Qualcomm for $30 billion in an overcharging dispute. Qualcomm had fired back with a paltry $7 Billion counter-suit for lost payments. They settled their dispute and investors went into a frenzy.
But have a look at this chart on any time frame. It's not just about the recent lawsuit. I've never seen such volatility before, in all my years.
So - how does one exploit this. Volatility is supposed to be essential to making money in markets - right? Errrh.. so why is this one gonna scare a lot of people?
The problem is in finding entry and exit positions! Those with keen eyes, have a look at the amber ATR indicator. Nearly every time there is a Grade A trend switch, $$ should flash in your eyes! It then becomes simple. The trend could decide your entry and exit points! No predictions!
Now the challenge is to find a suitable trend switch on the recent moonshot! Note the folly of shorting on ridiculously high or low RSIs. On this chart the RSI peaked most recently at 95.
But have a look at this chart on any time frame. It's not just about the recent lawsuit. I've never seen such volatility before, in all my years.
So - how does one exploit this. Volatility is supposed to be essential to making money in markets - right? Errrh.. so why is this one gonna scare a lot of people?
The problem is in finding entry and exit positions! Those with keen eyes, have a look at the amber ATR indicator. Nearly every time there is a Grade A trend switch, $$ should flash in your eyes! It then becomes simple. The trend could decide your entry and exit points! No predictions!
Now the challenge is to find a suitable trend switch on the recent moonshot! Note the folly of shorting on ridiculously high or low RSIs. On this chart the RSI peaked most recently at 95.
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